The CNN Money Fear and Greed index showed further decline in the overall market sentiment, while the index moved to the “Neutral” zone on Friday.
U.S. stocks settled lower on Friday, with the Dow Jones index falling more than 500 points during the session.
Major indices also recorded losses last week, with the S&P 500 falling 2.4% to record its worst weekly performance since May 23, while the Dow dipped 2.9% to notch its worst week since April 4.
Trade war concerns resurfaced after President Donald Trump announced sweeping new tariffs on countries without a formal trade agreement with the U.S. Key levies include 25% on imports from India, 39% from Switzerland, 20% from Taiwan, 30% from South Africa, 35% on Canadian goods, and a staggering 50% on Brazilian exports.
While July payrolls rose by 73,000—well below the 110,000 expected—revisions to prior months shocked markets: May and June payrolls were slashed by a combined 258,000 — the largest downward revision since 2020 — pointing to deeper cracks in the labor market than previously thought.
Shares of Amazon.com Inc. (NASDAQ:AMZN) fell more than 8% on Friday after the company reported second-quarter financial results. Apple Inc. (NASDAQ:AAPL) also lost 2.5% despite posting stronger-than-expected third-quarter results.
Most sectors on the S&P 500 closed on a negative note, with consumer discretionary, information technology and energy stocks recording the biggest losses on Friday. However, health care and consumer staples stocks bucked the overall market trend, closing the session higher.
The Dow Jones closed lower by 542 points to 43,588.58 on Friday. The S&P 500 fell 1.60% to 6,238.01, while the Nasdaq Composite dipped 2.24% to 20,650.13 during Friday’s session.
Investors are awaiting earnings results Tyson Foods, Inc. (NYSE:TSN), ON Semiconductor Corp. (NASDAQ:ON) and Aecom (NYSE:ACM) today.
What is CNN Business Fear & Greed Index?
At a current reading of 50.1, the index moved to the “Neutral” zone on Friday, versus a prior reading of 59.2.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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